Ecuador's bonds led a rebound among emerging market peers following a technical agreement with the IMF for a four-year loan of approximately $4 billion. The 2030 bonds rose to their highest level since June 2022. This agreement aims to help Ecuador keep up with its $16 billion in outstanding bonds and follows a successful previous $7.5 billion IMF deal. President Daniel Noboa, who took office after Guillermo Lasso dissolved parliament, has been dealing with public spending control, oil production, and internal conflicts with drug traffickers. Despite these challenges, bonds have performed well, and Noboa's market-friendly policies have boosted his popularity and fiscal deficit reduction commitments.

Ecuador's President Daniel Noboa has proposed a tax increase, raising VAT from 12% to 15%, to fund security measures against drug cartels. The government expects this to generate significant revenue, with the tax hike intended as a permanent solution. Ecuador's dollar bonds saw a positive response, while S&P Global Ratings downgraded the country's debt outlook due to the security crisis. Finance Minister Juan Carlos Vega plans to negotiate with the IMF for loans, as the fiscal deficit has increased. The National Assembly, which has previously supported Noboa, passed two economic fast-track bills and backed his declaration of a 'non-international armed conflict'.

Ecuador's mining industry, including companies like Lundin Gold Inc. and Tongling Nonferrous Metals Group Co., is maintaining operations amidst the country's narco crisis by increasing security measures. Despite challenges such as illegal mining and environmental concerns, the industry is collaborating with authorities and has not seen companies exit due to the security situation. Regulatory improvements and government reforms, including a national referendum on market-friendly measures, are also underway. The industry is navigating the crisis with a focus on continuing development projects and production.

Ecuador's President Daniel Noboa is capitalizing on the country's struggle against violent gangs to push for overdue reforms, including a proposed increase in the value-added tax from 12% to 15%. Noboa's administration is also planning deep cuts to the bureaucracy and the implementation of temporary labor contracts and international arbitration, which are facing opposition from left-wing parties and indigenous organizations. Despite challenges in congress and a negative outlook from S&P Global Ratings due to recent violence, the government is attempting to demonstrate its commitment to reforms to secure financing from multilateral lenders. The proposed tax increase is intended to convince the IMF to lend again, with the reforms expected to generate significant revenue for the state.

Ecuador is experiencing a surge in narco gang violence, with events escalating in January as two drug lords escaped from jail, prison uprisings occurred, and a TV station was overrun by masked gunmen. The chaos underscores Ecuador's transformation from a peaceful tourist spot to a dangerous war zone.

Ecuador is experiencing a surge in violence following the escape of two drug lords from prison, leading to a nationwide manhunt initiated by President Daniel Noboa. The violence has disrupted daily life, with residents afraid to leave their homes, tourists facing canceled flights, and public transportation halted. The country's murder rate has nearly doubled in 2023, and the recent events have threatened Ecuador's tourism industry, which is crucial for its economy. The US has pledged aid to help fight the cartel terror campaign, and the Ecuadorian military has been authorized to use lethal force. The government is also considering reforms to address security and economic issues.

Ecuador's President Daniel Noboa announced receiving a pledge of aid from the U.S. to combat a terror campaign by drug traffickers, following a meeting with U.S. Ambassador Fitzpatrick. The crisis, which escalated after a drug trafficker disappeared from his cell, has led to a state of emergency and military deployment. The government's crackdown on drug trafficking has resulted in increased violence, with Ecuador becoming one of the world's most dangerous nations. The U.S. embassy in Quito has not commented, but U.S. Assistant Secretary of State Brian Nichols expressed extreme concern and readiness to assist.

Ecuador's President Daniel Noboa is seeking voter approval for measures to address the country's rising crime rates following its most violent year in 2023. The proposed referendum includes ten questions on crime, suggesting military involvement against transnational criminal organizations and harsher sentences for terrorism, organized crime, drug trafficking, and contract killing. The national homicide rate surged to 46.5 per 100,000 inhabitants in 2023. A recent constitutional reform allows military cooperation with the police without a presidential emergency decree. The referendum also proposes an audit of judges' assets after a bribery scandal involving a drug trafficking gang. The only non-crime-related question concerns the reopening of casinos, closed since a 2011 referendum. The vote is set for the first week of March if approved by the court.

Ecuador's President Daniel Noboa, amidst a battle against violent gangs, has proposed a patriotic appeal for citizens to support the fight by bearing part of the cost. He has submitted a bill to increase the value-added tax and plans to ask voters to approve temporary labor contracts and international arbitration. Reforms include cutting bureaucracy and wasteful spending, aiming to save about 2% of GDP and convince the IMF to lend again. Noboa's proposals face opposition from major political parties and former President Rafael Correa. The country has seen a tense calm return, with large-scale police raids and ongoing prison standoffs. Ecuador's sovereign bonds rallied following the announcement of the reforms.

Ecuador's President Daniel Noboa has proposed a referendum to revamp the government's response to the nation's increasing crime rates, which reached a record high in 2023. The referendum includes measures for deeper military involvement against transnational criminal organizations, harsher sentences for terrorism, organized crime, and murder for hire, and an audit of judges' assets. The national murder rate in Ecuador soared to 46.5 per 100,000 residents in 2023. The referendum also includes a question on reopening casinos, closed since a 2011 referendum. If the Constitutional Court approves, the vote will occur in the first week of March.

Daniel Noboa, at 35 years old, assumes the presidency of Ecuador, facing daunting challenges such as a distressed debt, political assassinations, anti-mining riots, and rising crime. With only 17 months to complete the term of outgoing leader Guillermo Lasso, Noboa's young cabinet must navigate a steep learning curve to enact reforms. Investors remain skeptical of the government's ability to halt the nation's downward spiral. Noboa's urgent tasks include combating drug trafficking and extortion gangs that have caused a surge in homicides and addressing the nation's deteriorating fiscal accounts, which are isolated from global credit markets. The administration also faces the loss of oil revenue after a referendum to close a major field of the national oil company Petroecuador and must deal with political risks in the oil and mining sectors, as well as environmental challenges.

Ecuador's President-elect Daniel Noboa announced plans to cut taxes to enhance the country's competitiveness and attract investment. He conveyed his intentions to Barclays PLC analysts Alejandro Arreaza and Luis Rivases during a meeting in New York, emphasizing the need to reduce and organize the tax burden to make Ecuador more competitive in the region.